BZ Chart Of The Day: The Magic Level For SPY

The SPDR S&P 500 ETF Trust SPY has run into resistance at around $415. If it can break through, there’s a good chance that a new uptrend forms.

Resistance is a large group of investors trying to sell their shares at, or close to, the same price. And as you can see on the following chart, that has been the case with SPY and the $415 level.

Over the past two weeks, each time SPY reached it, the sellers put a top on the price and the move higher ended.

If the price rises and holds above this important level, it will illustrate a potentially bullish dynamic. It will show that the sellers who created the resistance have either finished or canceled their orders.

With this supply out of the way, buyers will be forced to pay higher prices. This could make for a new uptrend.

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